What is Waves (WAVES)?

Deep Dive

1. Purpose & Value Proposition

Waves aims to simplify decentralized application (dApp) development while prioritizing user accessibility. Originally launched in 2016, it gained traction by enabling token creation and decentralized trading during DeFi’s early stages. Its current focus includes integrating AI to automate complex processes like liquidity provisioning and smart contract auditing (Waves Protocol).

2. Technology & Architecture

The platform uses a hybrid structure:
- Layer-1: A Proof-of-Stake chain supporting custom tokens and smart contracts via the Ride programming language, designed for gas-free transactions.
- Layer-2: Units Network, an EVM-compatible chain focused on cross-chain interoperability and AI tooling, backed by a $10M funding round (CoinMarketCap).
Recent upgrades introduced L1 finality (faster transaction confirmations) and enhanced decentralization.

3. Ecosystem Fundamentals

Waves’ ecosystem thrives on niche DeFi projects:
- Puzzle Network: A multi-service DeFi hub with $18.65M TVL, offering swaps, lending, and stablecoin utilities.
- KoalaSwap: Permissionless liquidity pools with customizable fee structures.
- AI Tools: Pupas AI automates yield strategies, while the AI Launchpad assists developers in deploying dApps (Skynet Insights).

Conclusion

Waves positions itself as a resilient, adaptable blockchain platform bridging DeFi and AI innovation. Its modular design and ecosystem-specific tooling aim to lower barriers for developers and users alike. How will its AI-driven upgrades impact long-term adoption in a competitive DeFi landscape?